The experience curve says that the more you do something, the less it costs to do it. And that has important implications if you have chosen to build your market share by having lower costs than your competitors - a cost advantage strategy.
Experience curve theory is not the same as economies of scale, though scale can contribute to it. Its true ancestor is the learning curve. The learning curve was first worked up into a theory in the 1930s by TP Wright, who studied the US aircraft industry. He observed that every time cumulative aircraft production doubled - that’s the total number made over time - the man-hours required to make each one fell by a constant percentage (10 to 15 per cent, according to his study).
